Prices Rise Again in 2nd Quarter

Median homes prices are rising in 87% of markets, and it's setting records along the way. In the second quarter prices edged the record high from 2016, coming off a 6.2% jump even while the weak supply has been inflating prices higher. 

The national median price for a single family home from the second quarter was $255,600, which is up from $240,700 in Q2 of 2016. 23 metros saw double digits increases, and the price for a single family home rose a whopping 87% in markets across the nation.

According to the National Association of Realtors, The economy gained 2.2 million jobs over the past year, and that has really increased the buying trend; even more so with the tight supply. Homes in the market were being sold frequently, lasting only a month. Home prices rose due to the supply not being able to keep pace with the demand. 

If the supply could meet the demand, many more people could enter the markets and enjoy the wealth building opportunities of homeownership. They’re currently being priced out. 

Even though sales are still 1.6% higher than this time last year, the total existing home sales dropped 0.9% to a seasonally adjusted annual rate of 5.57 million for the second quarter. On the flip side, by 2nd quarter end in 2017, 1.96 million homes were on the market which is a 7.1% drop from 2016. The average supply was 4.2 months. 

The people are believing it’s a good time to buy because mortgage rates are down, their incomes are rising, but the supply of homes is still abhorrently low and it’ll pose problems for the second part of the year. 

The five most expensive housing markets in the second quarter were San Jose, San Francisco, Aneheim-Santa Ana, Honolulu, and San Diego. It’s no coincidence 4/5 are in California, and the 5th is even further west. You know what they say, “West Coast Best Coast”. Maybe not in affordability, but most other things yes. 

On the other side, the lowest-cost housing markets in the second quarter were Youngstown-Warren-Boardmen, Ohio. Cumberland, Maryland, Decatur, Illinois, Binghampton, New York, and Elmira, New York. Again, it’s no coincidence these are all on the East coast.

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